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If under paragraph I8 hereof rho Property is sold or the Property is athcrwise acquired by I-ender. Lender
<br />shall apply, no later than immediately prior to thr sale of the Property or its acquisition by Lender, any Funds
<br />held by Lender at the tithe of application as a cmdit, against the awns sceured by this .14ortgage.
<br />~ 3. Application of Payments. Unless applicable laic provides otherwise, all payments received by Lender
<br />~ under the Arote and paragraphs 1 and 2 hcreaf slixli he al?plicd bw Lender first in payment of amounts payable to
<br />~ Lender by Borrower under paragraph 2 hcreaf, then to interest. payable on the dote and on Future Advances, if
<br />~ any, and then to the principal of the \otc and to the principal of Future advances, it any.
<br />~' 4. Charges; Liens. Borrower shall pay all taxes, assessments anti other charges, fines and impositions attrib-
<br />3 arable to the Property which tnay attain x priority over this Mortgage, and ground rents, if any. at Lender's
<br />' option in the manner provided under paragraph 2 hereof or 6y- Harrower making payment, when due, directly to
<br />01 the payee thereof. Borrower shall promptly furris6 to Lender aI! notices of amounts due antler this paragraph,
<br />and in the ec•ent Borrower shall make payment. directly. Horroa-er shall promptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower shall promptlw discharge anc lien whicb has priority over this \'tortgsge; pro-
<br />vided, that Borrower shall not be required to discharge any such Tien so long as Horrotwer shall agree in writing to
<br />the payment of the obligation secured by such lien in a manner acceptable ro Lender, or shall in good Faith contest
<br />such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the en#orcement of
<br />the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insuraaee. Borrower shall keep the improvements now existing m- hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender may require and in such amounts and for such periods as Lender may require; provided, that. Lender shall
<br />not require that the amount of such coverage exceed that smouni of coverage required to pay the sums seeured'by
<br />this Mortgage.
<br />The insurance carrier providing the insurauee shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld.:111 premiums on insurance policies shall be paid
<br />at Lender's option in the manner provided under paragraph 3 hereof or by Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its interest, tray procure insurance on the improvements, pay the premiums and such sum shall become
<br />immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br />secured by this ?Mortgage. Failure by Borrower to comply may, at option of Lender, constitute a default
<br />tinder the Terms at- this ivlortgage.
<br />All insurance policies and renewals thereoi shall be in fornt acceptable to Lender and shall include a standard
<br />mortgage clause is iacor of and in iornr acceptable w Lender. Lender shall have tl:e right to hold the policies and
<br />renewals thereof, and Borrower shall promptlc furnish to Lender all renea-al notices and all receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, and Lender
<br />tnay make proof of loss ii not made promptly be Borrower.
<br />Unless Lender and Borrower otherwise agree in :c~•iting, insursncc proceeds shall be applied io restoration or
<br />repair of the Property damaged, provided such restoration or repair is ecaromically tensible cud the security of
<br />this Aiortgage is not thereby impaired. Ii such restoration or repair is not ecaromical{y feasible or if the security
<br />of this Mortgage would be impaired, the insursncc proceeds shall he applied to the sums secured by 'this A4ortgage,
<br />with the excess, if snc, paid to Borrower. It the Property is abandoned be Borrotwer or if Borrower fails to resaond
<br />to Lender within 30 days after native by Lender to Harrower that the insuratee carrier ofiety io set.ile a claim far
<br />insurauee benefits, Lender is authorized to collect and apply Lhe insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sum, secured by this \iortgsge.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceed; to principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraph; 1 and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, all right, Litle and interest of Borrower in
<br />and to any insurance policies and in and m the proceeds ti:ereaf tto the extent of the sum. secured by this l~lort-
<br />gage immediately prior to such sale or acquisitient resulting from damage to the Property prior to the sale or
<br />segtrisition shall pas; to Lender.
<br />& Preservation and }>laintenance of Property; Leaseholds; Condominiums. Borrower shall keep the Prop-
<br />erty in goal repair and shall not permit or commit waste, impsin??ent, or deterioration o£ the Property and shall
<br />comply with the prnwisians of any lease, ii this \1orgage is ua a leasehold. If Lhis Mortgage is on a condominium
<br />unit, Harrower shall perform all of Borrow-er's obligations under the declaration o condominium or master deed,
<br />the by-laws and regulations of the condominium project and constituent documents-
<br />7. Pro#eetioa of Leadei s Security. If Borrower fails to l,eriorn? the covenants and agreements contained in
<br />this ~f3-tgage, or if any action or proceeding is romnrenced whici: materially affects I.endzr's interest in the Prop-
<br />erty, including. but not limited to: eminent domain, in.olwency. cajc enforcement, or arrangements or proceed-
<br />ings involtidng a bankrupt or decedent, then Lender at Ixnder's option. upon notice to Borrower, may make such
<br />appearances, disburse such sums and take sucl: action 3s is ner•e-an' to pruiect Lender's interest, including, but
<br />not limited to, disbur~tnent of reasonable attorney'; Tee. and entry- upz!n the Property to make repairs. Any
<br />amounts disbursed by Tender pursuant to this paragraph ',. cviti: interest thereon:, shs[i 'became additional indebt-
<br />edness of Borrower secured ?:} this Mortgage. L`nless Borrower and Ixnder agree w other terms of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear inter-
<br />est #tnm the date of disbursement at the rate stairs. in tl?e \ote unieas payment of interest at such rate would be
<br />contrary to applicable law, in which even*. such amounts shall hear interest at the highest rate permissible by
<br />applicable law. '_vothing contained in this ,rasragrapb :shall require under fa incur any expense or do any act
<br />herxtrruter.
<br />8. Iaspectioa Lender may make or cs,~~e to lx• made rea-wnab?c ~-ntries upon and inspections of the Prop-
<br />erty, provided that Lender shall give Borrower not ire l,rtot to any Curl, inslrection specifying reasonable cause
<br />therefo=- relate.•' to Lender's mterest in tt-~ Yrperty.
<br />9. Coe~ation. The proceeds of any award or claim for ,damages, direct. or consequential, in connection
<br />with any condemnation or other taking of the Pro{xrt.y. ar part thereof, or for conveyance in lieu of condemna-
<br />taan, are hereby assigned and shall be paid to bender.
<br />In the event of a total taking of the Pra}xrty, the proceeds shall l,e al>pliEtif to the sums secured by this ~•fort-
<br />gage, with the excess, it any, paid 20 Borrower. Ia the event of a partial taking of the Property, unless Borrower
<br />and Ix-nder otherwise agree in writing, titers shall be applied to the earns secured by this 3fortgage such propor-
<br />tion of the proeeet3s a~ i®Cequal to that proportion which the amount of the sums secured by this '4lortgage imme-
<br />diately prior to the date of taking bears to the fair market value of the Property immediately prior to the date of
<br />Wig, ~ balance of the proceeds paid to Borrower.
<br />If the Property is abandoned by Borrower or if after notice by Lender to Borrower that the condemnor offers
<br />to make sn surd or settle a claim for damages, Borrower fails to respond to Lender within 3l? days of the date
<br />of such notice, Lturder•is authorised to collect and apply the proceeds at Lender's option either to restoration or
<br />repair of the Property or to the sums secured by this _llorkgage.
<br />Unless Lender and Borrower othernise agree in writing, any such application of proceeds to principal shall
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